Peer to Peer Invoice Trading in Singapore

Peer to Peer Invoice Trading in Singapore

Peer to Peer Invoice Trading in Singapore

Peer to Peer Invoice Trading in Singapore , What on earth  is that ? Where Can find them ?

Well lets talk about  how it works , so your business lack of working capital , but you have a great idea  or  Project that you would want to execute . Or you are in need for cash urgently due to specific reasons for business funding .

You check out your business  cash flow , there are no working capital left.  You went to the bank to apply for a short term loan , or term loan, you got rejected. Never give up , you look through a list of government grant , you apply all of them ,unfortunately they rejected your application.

Now you are in a desperate situation, you go to business partners, friends , relative to borrow money you get ignore.

Well, you go through you account and documents there is a customer invoice worth S$50 000 unpaid yet.

So now the  the Question

Peer to Peer Invoice Trading in Singapore

 What is a Peer to Peer Invoice Trading  ?

A Peer to peer invoice trading is a platform which allowed business owner who urgently in need for Cash to sell off their Invoice to Investor.

How does it works ?

Step 1

The Cash  in need business owner will approach the Peer to peer  invoice trading Platform , and list their Business Invoice  on the Peer to peer trading Platform

Step 2

The business owner can choose either he pay an interest rate for the invoice for a specific time length  or trade the invoice at a discount rate from the actual invoice value to the investors . Rate and interest depends on the platform the business enagage.

Step 3

The Peer to Peer Platform will charged a fee for the business owner to list  the invoice.

Step 4

The Invoice will be trade live in the peer to peer trading Platform.

Step 5

Investor will bid the Invoice listing, they can either bid the whole invoice amount , or bid it partially.

Step 6

The Highest Bidder gets the Invoice , and a fee  is charged by the Peer to Peer Platform to the Investor.

Step 7

The Business owner get paid by the  peer to peer Platform  in cash Advanced. A fee is being charged

Finally, when the debtor paid the invoice, the Peer to peer Platform will pay the investor back their capital and interest they earned.

Peer to peer trading can be a invoice trading organisation , or it can be a peer to peer Invoice lending organisation  operate by a financial institution.

There are different criteria set before a Business owner are able to list their Invoice in the Public Platform

The Criteria depends on the specific organisation  

  • The Minimum amount of the Invoice to be trade .
  • Company registered country.
  • Years operation,

Benefit of Peer to Peer invoice trading Platform

  • Drive down lending cost and fast transaction.